Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Mongolia

Mongolia

In Mongolia, the Traditional Retail Banking market market is expected to witness a significant growth in Net Interest Income.
It is projected to reach US$2.15bn by 2024.
Looking ahead, the market is anticipated to exhibit a steady annual growth rate (CAGR 2024-2029) of 3.79%.
This growth trajectory will result in a market volume of US$2.59bn by 2029.
When compared globally, China will continue to dominate the Net Interest Income sector, with an estimated value of US$2,426.0bn in 2024.
In Mongolia, traditional retail banking is experiencing a shift towards digital platforms to cater to the growing tech-savvy population.

Key regions: France, Brazil, Germany, United Kingdom, United States

Definition:
Traditional retail banking refers to the financial services sector that provides a range of financial products and services to individual consumers through store-based branches and other traditional channels. These services include personal loans, savings and checking accounts, credit cards, mortgages, and other financial products designed specifically for individual consumers.
Traditional retail banks have a long history of serving customers and have established relationships and a deep understanding of the financial needs of their communities. They offer a wide range of services and are able to provide personalized advice and support to their customers.
Despite facing increased competition and changing customer preferences, traditional retail banks continue to play a vital role in the financial landscape. They are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services.
Overall, traditional retail banking provides a wide range of financial services to individual consumers through established, trusted channels and continues to be an important part of the financial landscape.

Structure:
The market data comprises Net Interest Income, the value of Deposits, the value of Loans, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:
The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the retail and commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., Bank of America Corp., and BNP Paribas.

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Analyst Opinion

Mongolia, known for its vast landscapes and nomadic culture, is experiencing interesting developments in its Traditional Retail Banking market.

Customer preferences: Customers in Mongolia are increasingly seeking convenience and efficiency in their banking services, leading to a growing demand for digital banking solutions. This shift is driven by the young and tech-savvy population, who prefer to conduct their banking activities online or through mobile apps.

Trends in the market: One of the prominent trends in the Traditional Retail Banking market in Mongolia is the expansion of branch networks to rural areas. As the country's economy continues to develop, financial institutions are looking to tap into previously underserved markets by establishing physical branches in remote regions. This trend not only improves financial inclusion but also helps banks build trust and relationships with customers in these areas.

Local special circumstances: Mongolia's unique geography and low population density present challenges for the Traditional Retail Banking sector. With a significant portion of the population living in rural and nomadic communities, banks have to innovate to reach these customers effectively. Mobile banking services and agent banking are becoming popular solutions to bridge the gap and provide financial services to remote areas.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Mongolia are driving the demand for retail banking products and services. As more people enter the formal banking system, there is a growing need for tailored financial solutions to meet the diverse needs of customers. Additionally, regulatory reforms and government initiatives to promote financial literacy are shaping the landscape of the Traditional Retail Banking market in Mongolia.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.